Renovated Flex Space with
For Sale
$575,000
724 W 2ND Street, Davenport, IA 52802
Renovated flex property combines dedicated office space with a heated drive-in warehouse for storage or service use.
Property Size6,880 SF
Days on Market400
Property Features for 724 W 2ND Street
General Information
Standard status
Active
Size
6,880 SF
Property subtype
Commercial
Zoning
C-D
Warehouse & Industrial
Warehouse Space
4,569 SF
Office Build-Out
2,320 SF
Drive-In Doors
1
Taxes and HOA fees
Annual Taxes
$12,308
Amenities
conference room
kitchenette
Building Details
Building Size
6,880 SF
Year Built
1950
Buildings
1
Listing Agency:
NAI Ruhl Commercial Company
(563) 355-4000
Listed By:
Shawn Langan · License #475162291
(563) 355-4000
Source:
Exit2newbeginningz
Added: Jul 29, 2025
Changed: Aug 31
Last Checked: Aug 2 at 7:28AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of NAI Ruhl Commercial Company
Investment Insights
Based on property information with market context.
Built in 1950 and recently renovated, this C-D-zoned flex property combines office and warehouse components in a mixed-use commercial layout. The 2,320-square-foot office area has 11-foot ceilings, an open reception area, five private offices, a conference room, filing and storage space, a remodeled restroom, and a kitchenette. Mechanical systems and interior finishes have been updated.
The 4,569-square-foot warehouse is heated by a suspended unit heater and includes a 14' x 12' overhead drive-in door, supporting storage and service-related operations. The property is in Downtown Davenport, within a short distance of the Centennial Bridge and access between Iowa and Illinois.
The 4,569-square-foot warehouse is heated by a suspended unit heater and includes a 14' x 12' overhead drive-in door, supporting storage and service-related operations. The property is in Downtown Davenport, within a short distance of the Centennial Bridge and access between Iowa and Illinois.
Key Highlights
- 2,320 SF office area with 11‑foot ceilings
- 4,569 SF heated warehouse with suspended unit heater
- 14' x 12' overhead drive‑in door
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$41,177
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.16%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$823,540
$823.5K
Cap Rate 7%
$588,243
$588.2K
Cap Rate 9%
$457,522
$457.5K
Market Conditions
NOI Build-Up for 6,880 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$61.9K $9.00/SF
− Vacancy
−$3.1K −$0.45/SF
EGI
$58.8K $8.55/SF
− OpEx
−$17.6K −$2.56/SF
NOI
$41.2K $5.98/SF
Area
Davenport, IA
Vacancy
5.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$823,540
Cap Rate 7%
$588,243
Cap Rate 9%
$457,522
Alternative Uses
Best Use
Office B
$1.11M
$975.2K – $1.30M
NOI $78,019 @ 7.0% cap · market cap 13.57%
Second Best
Flex RnD
$864.8K
$756.7K – $1.01M
NOI $60,533 @ 7.0% cap · market cap 10.53%
Theoretical Best
Office A
$1.48M
$1.30M – $1.73M
NOI $103,946 @ 7.0% cap · market cap 18.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Drive-in doors
Location Intelligence
Trade Area within ½ mile
1,327
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 52802, IA
9,967
Population
4,379
Households
2.3
Avg Household Size
39
Median Age
8%
College-Educated
84%
High-School Grad
10.4 sq mi
ZIP Area
958
Density / Sq Mi
$50,850
Median Household Income
$31,250
Median Earnings
$978
Median Rent
$84,400
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- The Breakroom — 116 W 3rd St, Davenport, IA 52801
Frequently Asked Questions
What type of property is this?
Flex space - Renovated flex property combines dedicated office space with a heated drive-in warehouse for storage or service use.
Where is this flex space located?
The property is located at 724 W 2ND Street Davenport, IA.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: 2,320 SF office area with 11‑foot ceilings; 4,569 SF heated warehouse with suspended unit heater; 14' x 12' overhead drive‑in door
